RE: Performance Guarantees and Advance Payment Bonds7 Nov 2023 15:02
PFC Going concern
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2023
Introduction
The Directors have performed a robust going concern assessment for the period to 31 December 2024, to validate the continued application of the going concern basis in the preparation of the financial statements of the Group. This included reviewing and challenging downside scenarios considered to be severe but plausible based on the principal risks and uncertainties, as set out on pages 78 to 87 of the Group’s annual report and accounts for the year ended 31 December 2022.
2.3 Adoption of new financial reporting standards, amendments and interpretations
• Modelled a range of severe but plausible downside scenarios to reflect uncertainties inherent in forecasting future operational and financial performance, including changes in geo-political or macro- economic environments. These included, but were not limited to, lower order intake, cost overruns, adverse commercial settlements, and deterioration in net working capital and adverse outcomes on contingent liabilities.
New standards, interpretations and amendments adopted by the Group
• Evaluated the mitigation actions deemed to be in the control of management, including, but not limited to, “reducing costs through further headcount”, “salary and third-party cost reductions”, and “conserving cash through working capital management” and reductions in uncommitted capital expenditure. Additional mitigations, such as the “disposal of non-core assets,” are available, but have not been included as the outcome of such actions are not entirely in the control of management.
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2022. There are no accounting pronouncements which have become effective from 1 January 2023 that have a significant impact on the Group’s interim condensed consolidated financial statements.
THE WRITING IS ON THE WALL
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